State-owned arms manufacturer Denel has announced that they are unable to pay their employees full salaries this month due to cash flow problems.
Labour union Solidarity confirmed that it attended a meeting with the arms manufacturer on Monday afternoon and was advised the workers will only received 85 percent of their salaries.
Solidarity’s Johan Botha is awaiting response to a letter asking when workers can expect the remaining 15 percent.
Denel did not elaborate as to the reason for their cash flow problems.
The South African Transport and Allied Workers Union (SATAWU) are demanding that the company pay their staff in full and claimed that their members had not yet received any salary as yet.
Denel group CEO Daniel du Toit told TimesLIVE that the balance of salaries will be paid soon.